As sentiment builds that the US Federal Reserve is done with its aggressive campaign of interest rate hikes, investors are offloading their dollar positions at the fastest rate in a year, according to a new report from the Financial Times.

This month, asset managers are preparing to sell 1.6% of their open dollar positions marking the largest monthly outflow seen since November of 2022, according to the outlet, which cited State Street, one of the biggest asset management firms.

The bank noted that since US jobs data released on November 3rd came in under expectations, investors have been making “significant” sales every day.

Michael Metcalfe, head of macro strategy at State Street said, “Flows in the past two weeks point to a rapid rethink with dollar demand.” He added that the recent sales of the dollar were partly a result of “an unusually large US [dollar] overweight” position.

He added, “Investors think ‘if [rate cuts are] actually going to be delivered, then I don’t need to hold as many dollars.’”

The American dollar saw its worst monthly performance in a year in November, with analysts forecasting that “sales by asset managers could just be the start of a longer-term trend among investors to reduce exposure to US assets.”

The Financial Times noted that the weakness of the dollar is beneficial to emerging markets, where it makes repaying dollar denominated loans cheaper, which could lead to investors pouring back into developing economies, following the massive sales of hard-currency debt in 2023.